(Bloomberg) — As 140 countries try to wind down years of negotiations to overhaul global tax rules for an increasingly digitized economy, they are racing against time to learn important details.
With just over a week until the October 8 meeting of all governments involved, negotiators are still differing over the criteria for setting the global corporate tax minimum and sharing what is earned in taxes on tech giants like Facebook Inc. and Alphabet Inc. People are familiar with the matter.
They are also seeking to see how the global agreement will coordinate countries to prevent new digital unilateral taxes, a hot topic for governments seeking to protect revenue, and for the United States that considers such taxes discriminatory against its businesses.
Looking at upcoming talks, there is uncertainty about whether the United States can actually honor any kind of agreement after Republican Senator Patrick Tomei said this week that Congress would likely block ratification.
Taken together, obstacles threaten the Biden administration and the G-20’s goal of ending a race to deliver ever lower taxes to attract business investment. Global tax changes are a mainstay of Biden’s tax proposals to help drive trillions of dollars in social spending.
More broadly, the Organization for Economic Co-operation and Development, which is trying to negotiate a deal, has warned that failure would lead to a combination of digital unilateral duties and trade and tax disputes that could wipe out more than 1% of global GDP annually. .
Ahead of the October 8 meeting of all the countries involved, the G7 finance ministers, who led the talks at the crucial moments, met on Wednesday via teleconference. The UK, which currently chairs the group, said there was a “common understanding” of some important issues and a commitment to implementation. But countries failed to set positions on the key numbers that would shape the agreement.
“The conversation was constructive and we have come a long way on important points,” French Finance Minister Bruno Le Maire told Bloomberg News. We won’t let the chance of a great deal go to waste next week. We can do it.”
Nota Original: The global tax talks race to solve hurdles as time runs out
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